BOGOTA, Colombia--(BUSINESS WIRE)--In 2013, Avianca Holdings S.A. (NYSE: AVH) (BVC: PFAVH) (*) continued to work through its operating subsidiaries on modernizing its infrastructure, improving management systems, streamlining operational processes, consolidating the network as well as creating new services for its customers travelling to the USA and Europe.
As mentioned by Avianca´s CEO Fabio Villegas Ramirez: “The year 2013 was marked by a general upward trend for the air travel industry and Avianca in particular. This trend was driven by the countries that came out of the economic crisis, as well as an increase in the commercial dynamics of the Latin American countries, which in turn pushed the development growth strategies and service improvements for the subsidiary airlines of Avianca Holdings. As such Avianca S.A. consolidated its connection hubs in Bogota, San Salvador and Lima generating new access opportunities to Avianca´s vast network for Latin American travelers. The Company moreover strengthened its other business units improving the market share of its passenger, cargo, maintenance, Avianca tours and others."
Financial and operational results:
At the end of 2013, Avianca SA Holdings recorded a revenue growth of 8.0% from USD $4.2 billion in 2012 to USD $4.6 billion in 2013. Operating costs increased by 5.9%, from $3.9 billion in 2012 to U.S. $4.2 billion in 2013.
Adjusted net income for 2013 amounted to USD $234.1 million, which is 132.5% above the adjusted net income for 2012, which stood at USD $100.7 million.
For 2013, the EBITDAR (earnings before interest, taxes, depreciation, amortization and rents) grew 25.8% from USD $658.3 million in 2012 to U.S. $828.2 million in 2013. Meanwhile, EBIT (operating profit) in 2013 stood at USD $384.9 million, representing an increase of 37.0%.
Through its subsidiaries, Avianca Holdings SA carried in 2013, 24.6 million passengers:
In 2013, Avianca Holdings Inc. carried, through its subsidiaries, 24.6 million passengers, recording a rise of 6.6% compared to the number of passengers carried in 2012. The capacity measured in ASKs (available seats per kilometer) increased by 6.1%, while passenger traffic measured in RPKs (revenue passengers per kilometer) grew 7.3%. As a result, the load factor for the period January-December rose from 79.6% in 2012 to 80.5% in 2013. For its part, the * RASK (revenue per available seat kilometer) rose 1.8%, while CASK (cost per available seat kilometer) fell 0.1% from USD $10.92 cents in 2012 to USD $10.90 cents in 2013.
Strategic Projects and Milestones:
Renovation and modernization of the fleet: The company took delivery during the year 2013 of a total of 15 aircraft: six Airbus from the A320 family, one ATR 42, four ATR 72-600, one Airbus A330 aircraft and three freighters Airbus A330-200F. The subsidiary airlines of Avianca Holdings S.A. thus ended the year with a consolidated operating fleet of 150 operational passengers aircraft and five cargo aircraft.
Avianca, as a single commercial brand: In 2013, the integrated airlines of Avianca Holdings adopted the name Avianca as the single commercial trademark, thus advancing in the consolidation, as well as presenting all the airlines of the holding as one single service provider. The new “Avianca” will unite the operation of: Aerovias the integrated operation of the Americas SA Avianca (Avianca), Tampa Cargo SA incorporated in Colombia, Aerolineas Galapagos SA Aerogal incorporated in Ecuador, and the Grupo TACA companies: TACA International Airlines SA, incorporated in El Salvador, Costa Rican SA, LACSA, incorporated in Costa Rica, Airlines Transmerican Airlines SA incorporated in Peru, Servicios Aereos Nacionales SA, SANSA incorporated in Costa Rica, Aerotaxis La costeña SA, incorporated in Nicaragua and Isleña de Inversiones CA de C.V. ISLEÑA incorporated in Honduras. The image of the new Avianca is being deployed in more than 14 thousand aircraft seats, 214 offices and 100 airports in 26 countries.
Access to the International Capital Markets: On November 5th the company listed its level 3 ADR’s (NYSE:AVH) on the New York Stock Exchange (NYSE). With this key milestone, the Company has now open access to an entirely new, incredibly deep pool of liquid funding sources in the international capital markets that come with greater visibility and exposure. Hence, Avianca is now better positioned to compete and compare itself with its global airline industry peers.
Network: Throughout the year, the overall network was strengthened through point to point direct routes from our Bogota, San Salvador and Lima hubs. Thus, 5,500 weekly frequencies were deployed to more than 98 destinations in 26 countries. Furthermore, last year Avianca increased its international operations through new routes such as: Bogota-San Juan de Puerto Rico, Cancun Bogota, Bogota Guatemala, San Salvador to Newark and Chicago as well as San Salvador to Medellin. Moreover the Company extended the presence in its domestics markets by increasing routes in Central America, Colombia and Peru.
Consolidation of the Hubs:
Bogotá, Colombia. Operation through the Bogotá hub added 3,059 weekly departures to 24 cities in Colombia, five cities in North America, 10 in South America, 12 in Central America, Mexico and the Caribbean and two destinations in Europe.
San Salvador, El Salvador: Through the San Salvador hub over 725 weekly departures are operated to and from 11 cities in North America, six in South America and 12 in Mexico, Central America and the Caribbean.
Lima, Perú. This hub operates 527 weekly departures to 15 points in South America, five in Mexico, Central America and Caribbean, North America Off-nine domestic destinations.
Information Technology: Aware of the impact of information technology in the service that the Company provides, Avianca Holdings S.A. continued to develop its technological platform. In order to facilitate access to its customers, a single web page was launched with new applications facilitating travel arrangements such as buying tickets and obtaining relevant information about our products.
*2012 operating revenues exclude revenues from Cargo & Others of $32.6 million, related to the redemption of miles associated to ticket sales that is therefore accounted as passenger revenues.
The terms "Avianca Holdings" or "the Company" refer to the consolidated entity.
The original source-language text of this announcement is the official, authoritative version. Translations are provided as an accommodation only, and should be cross-referenced with the source-language text, which is the only version of the text intended to have legal effect.
About Avianca Holdings S.A. Avianca Holdings S.A. (BVC:PFAVH) is an investment firm that serves as an instrument for the execution of the shareholders agreement which resulted in the integration process known as AviancaTaca and acts as the controlling company for the integrated operation of various airlines that operate both domestically and internationally: Aerovías del Continente Americano S.A. Avianca (Avianca), Tampa Cargo S.A. incorporated in Colombia, Aerolíneas Galápagos S.A. Aerogal incorporated in Ecuador, and the companies that make up the TACA Group: TACA Internacional Airlines S.A., incorporated in El Salvador; Líneas Aéreas Costarricenses S.A., LACSA, incorporated in Costa Rica, Trans American Airlines S.A. TACA Peru incorporated in Peru, Servicios Aéreos Nacionales S.A., SANSA incorporated in Costa Rica, Aerotaxis La Costeña S.A, incorporated in Nicaragua and Isleña de Inversiones C.A. de C.V. ISLEÑA incorporated in Honduras.